Hedge Funds Natural Gas
Hedge Funds Increase Natural Gas Bets - First in 6 Weeks
Hedge funds are betting optimistically on the price of natural gas. This is the first time in six weeks that hedge funds have boosted bets on natural gas. Funds are likely anticipating the spike in demand as hot weather has people using their air conditioning more.
Natural gas climbed every day last week, the longest- winning streak since November, and advanced 36 cents, or 7.9 percent, to $4.923 per million British thermal units on the New York Mercantile Exchange. Hedge funds and other large speculators increased bullish bets by 14 percent the week ended July 27, the Commodity Futures Trading Commission reported.
“These guys were on the ball,” said Hamza Khan, an analyst at the Schork Group in Villanova, Pennsylvania. “The money managers were getting in. We saw a pop in prices.”
Investors retreated from natural-gas markets until the week ending July 20 as prices declined 12 percent amid forecasts that inventories will be near record highs by the end of October. So- called net-long positions fell for five straight weeks to the lowest level since January before rising last month as a heat wave across the U.S. East Coast reduced surpluses as demand for electricity increased. Source
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